Independent Hong Kong ETF provider Premia is listing US dollar share classes of two smart beta ETFs, targeting China’s new and old economy.
Premia CSI Caixin China New Economy ETF (9173)
Premia CSI Caixin China Bedrock Economy ETF (9803)
The new economy ETF tracks the CSI Caixin New Economic Engine Index, which looks for 300 Shanghai and Shenzhen listed stocks from “new economy industries”. The index looks for IP-based businesses with heavy R&D spend and strong fundamentals.
Fundamentals are measured by cash ratios, profit margins and debt levels. The fund a strong sector concentration in technology (software, consumer electronics, online shopping) and pharmaceuticals, the index factsheet suggests.
The bedrock economy fund tracks the CSI Caixin China Bedrock Economy Index, which consists of approximately 300 Shanghai and Shenzhen listed based on profitability.
The aim is to pick the eyes out of A-Shares, and bag the large caps that make 50% of total A-Shares revenue.
Both funds charge 0.50%, as with the HKD share classes.